Bank of Ghana Intensifies Crackdown on Illegal Lending Apps Amid Rising Consumer Protection Concerns
The Bank of Ghana (BoG) has intensified its crackdown on illegal lending apps that have been employing threatening tactics against loan defaulters, in a bid to protect the integrity of the financial sector.
The central bank has underscored that it is a criminal offense for these apps to intimidate borrowers by threatening to expose their personal data and photographs—an alarming practice that has, in some cases, led to tragic outcomes, including suicide.
Speaking at the MTN Ghana Mobile Money @15 Fintech Stakeholders’ Forum, Kwame Oppong, Director of Fintech at the BoG, issued a stern warning that the central bank will not tolerate unauthorized financial products that pose a risk to the stability of the financial system.
“Nothing should be introduced in this country that causes instability in the financial sector and somehow puts the integrity of the economy at risk. Secondly, nothing should come into the country that somehow jeopardizes the livelihoods of individuals and businesses,” Mr Oppong stated.
He condemned the predatory behavior of some digital lenders, particularly those that resort to public shaming as a method of debt collection.
“It is unthinkable to threaten people because they have defaulted on loans. Those illegal lending apps that share borrowers’ pictures online—how is this a way to do business? It is unacceptable to push people to the brink by threatening to expose them publicly,” he remarked.
The BoG, in collaboration with the Economic and Organised Crime Office (EOCO) and other security agencies, has already taken action, conducting a series of raids that resulted in the arrest of over 200 individuals, including foreign nationals, involved in these illicit activities.
At the same event, Shaibu Haruna, Chief Executive of Mobile Money Limited, reiterated MTN’s commitment to bolstering safety measures and expanding public education on mobile money fraud, in an effort to enhance customer trust.
The MTN Mobile Money @15 Fintech Stakeholders’ Forum, themed “Building Trust and Cooperation Among Stakeholders; How to Maximize the Impact of Emerging Technologies for the Promotion of Financial Inclusion,” convened key industry players to discuss the role of emerging technologies in the financial sector and to explore ways to strengthen regulatory frameworks to build trust among users and stakeholders.
